GIFI Liability Accounts
GIFI codes 2000 to 2999 cover every current and long-term liability reported on Schedule 100, including payables, tax payable, and shareholder loans.
Definition
The 2000 to 2999 GIFI range captures present obligations arising from past events. Schedule 100 separates current liabilities (typically due within twelve months) from long-term liabilities, and distinguishes third-party debt from amounts owing to shareholders or related parties. Like the asset range, these codes are independent of the accounting framework used.
Key rules
- Current liabilities (2600 to 2999 in the most-used bands): bank indebtedness, trade payables, sales tax payable, income tax payable, and the current portion of long-term debt.
- Long-term liabilities (2700 to 2780 range, plus 3140 to 3280 for some items): bank loans beyond twelve months, mortgages, and loans from related parties that are not repayable on demand.
- Sales tax accounts are presented net. GST/HST collected sits on 2680, input tax credits reduce the balance, and the net payable or refundable amount is what appears on Schedule 100.
- Corporate income tax payable (2700) reflects the balance owing on the T2 after instalments. An overpayment moves to the asset side as 1483.
- Shareholder loans payable sit on 2780 (long term) or 2620 subcategories when current. Watch ITA s.15(2): amounts owed by the corporation to its shareholder are a payable and are not the same as shareholder loans receivable.
Example
Common liability GIFI codes used by a small CCPC:
A credit balance in 1480 Due from shareholders usually means the amount has become a payable and should be reclassified to 2780 at year end. Misclassifying direction affects Schedule 50 and the ITA s.15(2) analysis.
Common mistakes
- Netting GST collected and input tax credits into a single journal account that is mapped to 2680 only. Keep collected and claimed in separate ledger accounts; the GIFI code simply shows the net.
- Leaving corporate income tax payable at the prior-year accrual after filing. The T2 balance owed or refundable resets each year.
- Treating a shareholder advance as equity. Amounts owed back to the shareholder are liabilities unless formally contributed for shares.
- Including post-dated cheques written but not cashed as a liability. They remain in cash until the payment clears.
- Classifying the entire bank loan as current because payment is "due monthly". The current portion is the twelve-month principal only; the rest stays long term.
Related concepts
Liabilities feed and the . For tax-sensitive intercompany and shareholder obligations, see . The residual interest after liabilities is , and the full range map is in .
Authority
- Canada Revenue Agency Guide RC4088, General Index of Financial Information (GIFI)
- Canada Revenue Agency Guide T4012, T2 Corporation Income Tax Guide
- Income Tax Act s.15(2)
See also
Related entries
GIFI Overview
The General Index of Financial Information (GIFI) is CRA's standardized four-digit coding system that maps every balance sheet and income statement account to a T2 return line.
GIFI Asset Accounts
GIFI codes 1000 to 1999 cover every asset a corporation reports on Schedule 100, from cash and receivables through capital assets and intangibles.
GIFI Equity Accounts
GIFI codes 3000 to 3999 capture the residual interest in a corporation: share capital, contributed surplus, retained earnings, and dividends.
Schedule 100. Balance Sheet Information
Schedule 100 (T2SCH100) reports balance sheet items using CRA's General Index of Financial Information (GIFI) codes, mapping the corporation's trial balance accounts to standardized CRA categories.
Balance Sheet
The Balance Sheet (Statement of Financial Position) reports a corporation's assets, liabilities, and equity at a single point in time.
Shareholder Loans (ITA 15(2))
Loans from a corporation to a shareholder are included in the shareholder's income unless repaid within one year after the corporation's tax year-end.
This entry is for general reference. It does not constitute professional tax advice. Consult a qualified Canadian accountant for your specific situation.